5 Undervalued REITs Offering High Yields in 2026
Real estate investment trusts (REITs) are back in focus as income investors hunt for attractive yields amid shifting interest-rate expectations.
According to Morningstar, five REIT stocks currently trade at significant discounts to their estimated fair value, offering both upside potential and strong dividend income.
Over the past year:
• Morningstar US Real Estate Index: +8.31%
• Morningstar US Market Index: +16.44%
While real estate has lagged the broader market, recent gains suggest renewed momentum — especially if interest rates trend lower.
Here’s a breakdown of the five most undervalued REITs as of Feb. 24, 2026.
1. Americold Realty Trust Inc (COLD)
• Price/Fair Value: 0.50 (50% undervalued)
• Forward Dividend Yield: 7.03%
• Industry: Industrial REIT (Cold Storage)
What It Does
• Operates temperature-controlled warehouses
• Serves food, pharma, floral, and chemical industries
• Second-largest cold storage operator globally
Investment Case
• Portfolio concentrated in North America
• Long-term consolidation story intact
• Mid-single-digit NOI growth expected over the next decade
Risks
• Weaker food demand
• Excess warehouse capacity
• Labor challenges in cold storage facilities
2. Park Hotels & Resorts Inc (PK)
• Price/Fair Value: 0.54
• Forward Dividend Yield: 8.87%
• Industry: Hotel REIT
Portfolio Highlights
• 36 luxury & upper-upscale hotels
• 22,395 rooms across the U.S.
• Brands include Marriott, Hyatt, IHG
Growth Drivers
• Renovations boosting revenue per available room (RevPAR)
• Recovery in leisure travel
• Focus on high-quality domestic assets
Challenges
• International tourism slowdown
• Elevated hotel supply
• Airbnb competition limiting pricing power
3. Kilroy Realty Corp (KRC)
• Price/Fair Value: 0.56
• Forward Dividend Yield: 6.96%
• Industry: Office & Life Science REIT
Geographic Focus
• Los Angeles
• San Francisco Bay Area
• Seattle
• San Diego
• Austin
Strengths
• High-quality, modern portfolio (avg. age ~12 years)
• Strong life sciences exposure
• ESG-focused strategy
Headwinds
• High office vacancy (especially West Coast)
• Remote/hybrid work trends
• Weak rental growth
AI-related growth in tech hubs could provide long-term tailwinds.
4. Invitation Homes Inc (INVH)
• Price/Fair Value: 0.63
• Forward Dividend Yield: 4.67%
• Industry: Residential REIT
Portfolio
• 85,000+ single-family rental homes
• 17 U.S. markets
• Heavy exposure to Florida & Western U.S.
Investment Thesis
• Renting cheaper than owning in most markets
• Millennial demand for suburban rentals
• Economies of scale in maintenance & operations
Long-Term Risk
• Aging baby boomers could increase housing supply
• Long-term growth may track inflation only
5. Healthpeak Properties Inc (DOC)
• Price/Fair Value: 0.66
• Forward Dividend Yield: 7.07%
• Industry: Healthcare Facilities REIT
Portfolio Mix
• 52% Medical Office
• 36% Life Science
• 12% Retirement & Triple-Net Assets
Strategic Moves
• Sold senior housing assets during pandemic
• Completed $5bn merger with Physicians Realty Trust
• Focus on high-quality medical office & life science properties
Long-Term Tailwinds
• Aging population
• Increased healthcare spending
• Demand for cost-efficient care settings
Why REITs Matter Now
REITs are:
High-yield income plays
Historically sensitive to interest-rate cuts
Attractive when trading below fair value
However, risks remain:
• Interest-rate volatility
• Sector-specific structural changes (remote work, Airbnb, healthcare reforms)
• Economic slowdown impact on property demand
Bottom Line
These five REITs offer:
• Discounts of 34%–50% to fair value
• Dividend yields between 4.67% and 8.87%
• Exposure to industrial, hotel, office, residential, and healthcare real estate
For income-focused investors willing to tolerate sector volatility, these undervalued REITs could provide both yield and recovery upside in 2026.
Real estate investment trusts (REITs) are back in focus as income investors hunt for attractive yields amid shifting interest-rate expectations.
According to Morningstar, five REIT stocks currently trade at significant discounts to their estimated fair value, offering both upside potential and strong dividend income.
Over the past year:
• Morningstar US Real Estate Index: +8.31%
• Morningstar US Market Index: +16.44%
While real estate has lagged the broader market, recent gains suggest renewed momentum — especially if interest rates trend lower.
Here’s a breakdown of the five most undervalued REITs as of Feb. 24, 2026.
1. Americold Realty Trust Inc (COLD)
• Price/Fair Value: 0.50 (50% undervalued)
• Forward Dividend Yield: 7.03%
• Industry: Industrial REIT (Cold Storage)
What It Does
• Operates temperature-controlled warehouses
• Serves food, pharma, floral, and chemical industries
• Second-largest cold storage operator globally
Investment Case
• Portfolio concentrated in North America
• Long-term consolidation story intact
• Mid-single-digit NOI growth expected over the next decade
Risks
• Weaker food demand
• Excess warehouse capacity
• Labor challenges in cold storage facilities
2. Park Hotels & Resorts Inc (PK)
• Price/Fair Value: 0.54
• Forward Dividend Yield: 8.87%
• Industry: Hotel REIT
Portfolio Highlights
• 36 luxury & upper-upscale hotels
• 22,395 rooms across the U.S.
• Brands include Marriott, Hyatt, IHG
Growth Drivers
• Renovations boosting revenue per available room (RevPAR)
• Recovery in leisure travel
• Focus on high-quality domestic assets
Challenges
• International tourism slowdown
• Elevated hotel supply
• Airbnb competition limiting pricing power
3. Kilroy Realty Corp (KRC)
• Price/Fair Value: 0.56
• Forward Dividend Yield: 6.96%
• Industry: Office & Life Science REIT
Geographic Focus
• Los Angeles
• San Francisco Bay Area
• Seattle
• San Diego
• Austin
Strengths
• High-quality, modern portfolio (avg. age ~12 years)
• Strong life sciences exposure
• ESG-focused strategy
Headwinds
• High office vacancy (especially West Coast)
• Remote/hybrid work trends
• Weak rental growth
AI-related growth in tech hubs could provide long-term tailwinds.
4. Invitation Homes Inc (INVH)
• Price/Fair Value: 0.63
• Forward Dividend Yield: 4.67%
• Industry: Residential REIT
Portfolio
• 85,000+ single-family rental homes
• 17 U.S. markets
• Heavy exposure to Florida & Western U.S.
Investment Thesis
• Renting cheaper than owning in most markets
• Millennial demand for suburban rentals
• Economies of scale in maintenance & operations
Long-Term Risk
• Aging baby boomers could increase housing supply
• Long-term growth may track inflation only
5. Healthpeak Properties Inc (DOC)
• Price/Fair Value: 0.66
• Forward Dividend Yield: 7.07%
• Industry: Healthcare Facilities REIT
Portfolio Mix
• 52% Medical Office
• 36% Life Science
• 12% Retirement & Triple-Net Assets
Strategic Moves
• Sold senior housing assets during pandemic
• Completed $5bn merger with Physicians Realty Trust
• Focus on high-quality medical office & life science properties
Long-Term Tailwinds
• Aging population
• Increased healthcare spending
• Demand for cost-efficient care settings
Why REITs Matter Now
REITs are:
High-yield income plays Historically sensitive to interest-rate cuts Attractive when trading below fair valueHowever, risks remain:
• Interest-rate volatility
• Sector-specific structural changes (remote work, Airbnb, healthcare reforms)
• Economic slowdown impact on property demand
Bottom Line
These five REITs offer:
• Discounts of 34%–50% to fair value
• Dividend yields between 4.67% and 8.87%
• Exposure to industrial, hotel, office, residential, and healthcare real estate
For income-focused investors willing to tolerate sector volatility, these undervalued REITs could provide both yield and recovery upside in 2026.
